Payzone is to be challenged over its ‘unfair’ contract term changes that have angered some retailers into switching off their terminals in protest.
NFRN solicitors have written to Payzone to accuse the company of breaking the Unfair Contract Terms Act 1977, and demanding a resolution.
Retailers who receive letters are automatically rolled over onto the new terms and conditions with no ability to reject or cancel the contract, despite the large changes in terms. These changes include additional charges, banning retailers from charging for card transactions and the ability to further change any of the terms and fees with just seven days’ notice.
When rivals PayPoint recently made similar changes, they were legally obliged to give retailers the opportunity to exit their contract early without charge. The new Payzone contract contains no such opportunity for their partners.
Commenting on the changes, Rotherham based retailer Maqsood Akhtar commented: “It’s the sheer fact that they don’t even care one little bit about how we retailers will feel.”
We have the support of our valued customers against the ‘bully boy’ tactics of @Payzone_UK. Don’t treat your retailer’s with contempt.
— AmitP (@AmitP327) August 3, 2017
@Payzone_UK think it’s ok to send out a letter without discussion to lock retailers into a new 3 year contract on worse terms- #dontsign
— Paul Baxter (@PaulBaxterNFRN) July 31, 2017
NFRN CEO Paul Baxter described the changes as the one of the most outrageous attempts to impose unfair contracts upon retailers that he has seen in his 35 years working within retail.
He said: “The NFRN has taken advice from Counsel and believes that Payzone are improperly trying to use the current contract’s right to vary the contract unilaterally in some ways and are infringing the Unfair Contracts Terms Act 1977.”
The organisation’s new national president Linda Sood also pledged to retailers: “The NFRN will stand behind members who wish to take action over this.”
Retail Express approached Payzone for comment and is awaiting their response.
Do it: Read the new terms and conditions here, and read the NFRN’s questions to Payzone here
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